[Federal Register Volume 72, Number 19 (Tuesday, January 30, 2007)]
[Rules and Regulations]
[Pages 4206-4207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-416]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 594


Global Terrorism Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Treasury Department's Office of Foreign Assets Control 
(``OFAC'') is amending the Global Terrorism Sanctions Regulations to 
define the term ``otherwise associated with'' as used in 31 CFR 594.201 
and to amend an explanatory note accompanying that section.

DATES: Effective January 26, 2007.

FOR FURTHER INFORMATION CONTACT: Chief Counsel (Foreign Assets 
Control), Office of the General Counsel, Department of the Treasury, 
Washington, DC 20220, tel.: 202/622-2410 (not a toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    OFAC administers the Global Terrorism Sanctions Regulations, 31 CFR 
part 594 (``GTSR''), which implement and interpret Executive Order 
13224 of September 23, 2001, in which the President declared a national 
emergency with respect to grave acts of terrorism and threats of 
terrorism committed by foreign terrorists and imposed economic 
sanctions with respect to certain designated individuals and entities. 
In section 7 of Executive Order 13224, the President authorized the 
Secretary of the Treasury, in consultation with other relevant Cabinet 
officials, to take such actions, including the promulgation of rules 
and regulations, as may be necessary to carry out the purposes of the 
order. The Secretary of the Treasury has, in turn, authorized the 
Director of OFAC to take these actions. 31 CFR 594.802. Today, OFAC is 
amending the GTSR by adding a new section 594.316 which defines the 
term ``otherwise associated with'' as used in section 
594.201(a)(4)(ii). OFAC also is amending Note 3 to section 594.201 to 
clarify the scope of section 501.807 of this chapter.
    The new section 594.316 defines a person ``otherwise associated 
with'' persons whose property and interests in property are blocked 
pursuant to section 594.201(a)(1), (a)(2), (a)(3), or (a)(4)(i) to 
include one who: (1) Owns or controls such persons; or (2) attempts, or 
conspires with one or more persons, to provide financial, material, or 
technological support, or financial or other services, to such persons. 
OFAC recognizes that this definition may include concepts that overlap 
with existing provisions of section 594.201 (a)(1), (a)(2), (a)(3), or 
(a)(4)(i). However, in light of the serious danger posed to national 
security by international terrorism, OFAC has determined that the 
benefit of greater specificity in its definitions outweighs any 
concerns with redundancy. In promulgating this definition, OFAC does 
not mean to imply any limitation on the scope of section 594.201(a)(1), 
(a)(2), (a)(3), or (a)(4)(i). Finally, as in all programs OFAC 
administers, these and other designation criteria in the GTSR will be 
applied in a manner consistent with pertinent Federal law, including, 
where applicable, the First Amendment to the United States 
Constitution.

Executive Order 12866, Administrative Procedure Act, Regulatory 
Flexibility Act, and Paperwork Reduction Act

    Because the regulations at issue involve a foreign affairs 
function, the provisions of Executive Order 12866 and the 
Administrative Procedure Act (5 U.S.C. 553) requiring notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.
    The Paperwork Reduction Act does not apply because this rule does 
not impose information collection requirements that would require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501 et 
seq.

List of Subjects in 31 CFR Part 594

    Administrative practice and procedure, Banks, Banking, Penalties, 
Reporting and recordkeeping requirements, Terrorism.


0
For the reasons set forth in the preamble, the Office of Foreign Assets 
Control amends 31 CFR part 594 as follows:

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
1. The authority citation for part 594 continues to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 109-177, 120 Stat. 192; E.O. 13224, 66 FR 
49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751; 3 CFR, 
2002 Comp., p. 240; E.O. 13284, 64 FR 4075, 3 CFR, 2003 Comp., p. 
161.

Subpart B--Prohibitions

0
2. In Sec.  594.201, revise Note 3 to paragraph (a) to read as follows:


Sec.  594.201  Prohibited transactions involving blocked property.

    (a) * * *

    Note 3 to paragraph (a). Section 501.807 of this chapter V sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation pursuant to 
Sec.  594.201(a) or who wish to assert that the circumstances 
resulting in designation no longer apply. Similarly, when a 
transaction results in the blocking of funds at a financial 
institution pursuant to this section and a party to the

[[Page 4207]]

transaction believes the funds to have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant 
to the administrative procedures set forth in Sec.  501.806 of this 
chapter.

* * * * *

Subpart C--General Definitions

0
3. Add a new Sec.  594.316 to subpart C to read as follows:


Sec.  594.316  Otherwise associated with.

    The term ``to be otherwise associated with,'' as used in Sec.  
594.201(a)(4)(ii), means:
    (a) To own or control; or
    (b) To attempt, or to conspire with one or more persons, to act for 
or on behalf of or to provide financial, material, or technological 
support, or financial or other services, to.

    Dated: January 25, 2007.
J. Robert McBrien,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 07-416 Filed 1-26-07; 2:24 pm]
BILLING CODE 4811-42-P